deductions. Currently, Indian taxpayers can choose between the old tax regime and the new tax regime. At the time of introduction, it had 7 different slabs. After three years from introduction, Indian Government reduced both the slab count & tax rates under New Tax Regime in Budget 2023, after reports of poor adoption to new tax regime by tax payers Tax brackets For the assessment year 2016–17, individuals earning up to were exempt from income tax. About one percent of the population, the upper class, falls under the 30-percent slab. It increased by an average of 22 percent from 2000 to 2010, encompassing 580,000 income-tax payers. The middle class, who fall under the 10- and 20-percent slabs, grew by an average of seven percent annually to 2.78 million income-tax payers. Agricultural income According to section 10(1) of the Act, agricultural income is tax-exempt. Section 2(1A) defines agricultural income as: Rent or revenue derived from land in India which is used for agricultural purposes Income derived from such land by agricultural operations, including the processing of agricultural produce, raised or received as rent-in-kind, for the market or for sale Income attributable to a farm house, subject to conditions Income derived from saplings or seedlings grown in a nursery Mixed agricultural and business income Income in the activities below is initially computed as business income, after permissible deductions. Thereafter, 40, 35 or 25 percent of the income is treated as business income and the rest is treated as agricultural income. Deductions These are permissible deductions according to the Finance Act, 2015: §80C – Up to 150,000: Provident and Voluntary Provident Funds (VPF) Public Provident Fund (PPF) Life-insurance premiums Equity-Linked Savings Scheme (ELSS) Home-loan principal repayment Stamp duty and registration fees for a home Sukanya Samriddhi Account National Savings Certificate (NSC) (VIII Issue) Infrastructure bonds §80CCCLife Insurance Corporation annuity premiums up to 150,000 §80CCD – Employee pension contributions, up to 10 percent of salary §80CCG – Rajiv Gandhi Equity Savings Scheme, 2013: 50 percent of investment or ₹25,000 (whichever is lower), up to 50,000 §80D – Medical-insurance premium, up to 25,000 for self/family and up to 15,000 for parents (up to 50,000 for senior citizens); premium cannot be paid in cash. §80DD – Expenses for medical treatment (including nursing), training and rehabilitation of a permanently-disabled dependent, up to 75,000 ( 1,25,000 for a severe disability, as defined by law) §80DDB – Medical expenses,